Clarification sought on role of two Anglo directors

SINN FÉIN’S finance spokesman Arthur Morgan has called for clarification on the role of the two public interest directors on the board of Anglo Irish Bank.

He said that in December 2008, Minister for Finance Brian Lenihan had appointed Frank Daly and Alan Dukes to the board. “It is interesting to note how these two appointees performed in relation to their public interest responsibility,” he added.

During the resumed debate on the Central Bank Bill, Mr Morgan said that in February 2009, when Anglo Irish Bank published its accounts for 2008, it was anticipated that there would be substantial losses.

He added: “I was gobsmacked to learn that they showed a profit of €784 million and asked what was going on when an institution, which had been nationalised just one month previously because it was on the rocks, could make such a large profit.

“I also wondered whether the public interest directors would have something to say on the issue, particularly Mr Daly, who was chair of the bank’s audit committee.

“The truth emerged some months later when we were told the bank had €12.7 billion in losses. How did this come about?

“Why is it not considered a scandal that a supposedly accountable bank published incorrect accounts which were signed by at least one of the public interest directors, Mr Frank Daly?”

Mr Morgan said that at a time when pensioners were having their Christmas bonus cut, those on low wages had a levy imposed on their salaries and welfare recipients had their income cut, Mr Daly was appointed chair of the board of Nama.

“That was his reward for the manner in which he dealt with the issue I have raised,” he added. “We also know that Alan Dukes is chairman-designate of Anglo Irish Bank. As such, he was also kindly rewarded for his role in this matter.”

Ned O’Keeffe (FF) said the State was employing auditing and legal firms and valuers who were involved in the “mischief” that had gone on in the banking sector.

“This must change as one cannot be a poacher turned gamekeeper or vice versa,” he added.

Mr O’Keeffe questioned the need for 700 people working in the Central Bank office.

“What are they there for? There are not even that many branches,” he added.

Labour finance spokeswoman Joan Burton referred to the €1.5 million pension top-up for Bank of Ireland chief executive Richie Boucher.

“For the people in Fianna Fáil, used to the Galway tent, this is small change because they told most of their visitors in the tent that it was a tiny amount of money,” she added.

“However, to the average public servant, who is thinking about how they will vote in regard to the Croke Park deal, it is a large, significant amount of money . . . the Minister can believe it or not.”

Kieran O’Donnell (FG) said there was a deficit in the pension fund of the ordinary employees of Bank of Ireland and some of them might have to wait until they were 68 years old to retire.

“Mr Boucher can retire at 55 on a pension of €325,000 per year. The amount is nearly double the salary of the Minister for Finance.

“Something is fundamentally wrong here.”

Mr O’Donnell predicted that Nama would have consequences for several generations of people in terms of the level of public expenditure that would be required to finance its operations.

Mr Lenihan said that Mr O’Donnell should read the IMF report and other reports from outside the State “and stop spouting nonsense all the time”.